What Exactly is Variable Universal Life Insurance?

Posted on Thursday, December 31, 2009
Filed under Variable Universal Life Insurance | 11 Comments

If permanent insurance with flexible premiums and options is
important to you, you’ll want to choose a variable universal
life insurance policy. This type of policy combines features of
universal life insurance with investment options, so you have
the potential for a larger death settlement than you would have
with an ordinary policy. It is called a variable universal life
insurance, because your investments and premiums are not fixed.
They are variable because they depend on the current market
conditions.

Variable universal life insurance has advantages over other life
insurance policies, such as Globe Life Insurance or whole life
insurance. With this type of life insurance you get to play the
stock market and choose the investment funds where you want to
put your money. With universal life insurance on its own, you
can’t control how your cash value is invested. When you combine
it with variable life insurance, you can switch investments two
or three times a year if you wish to get a higher life insurance
settlement.

As with 30 year term life insurance and others, you do have a
guaranteed death benefit. This amount could rise drastically if
you have the right investments with a variable universal life
insurance. The amount of the cash settlement varies, so that you
could have lots of money one day and the minimum life insurance
settlement the next.

The life insurance cost associated with variable universal life
insurance is higher than other types. However, along with this
comes the advantage that you have a tax shelter. The money you
make through investments will not be taxed until you cash in the
policy. The monthly premium you pay also varies, depending on
market conditions. This may not appeal to you if you are on a
fixed income and have to budget for the premiums.

Variable Universal life insurance is not for everyone. If you
want to make sure that there is a death benefit to protect your
family in the event of your death, then maybe you should look at
a 30 year life insurance or ask for a whole life insurance
quote. This way your money is guaranteed and you don’t run the
risk of losing it. The way market conditions are operating
today, the many falls seem to indicate that the cash value of
the life insurance policies are falling as well. It’s better to
be safe than sorry.

Variable universal life insurance gives you choices.